Value Added Tax in Thailand

A company doing business in Thailand and having a gross monthly income of at least 300,000 baht or yearly income of 1,800,000 baht is required to register under the Thai VAT system if its goods or services are liable to VAT.

The Revenue Department requires VAT returns to be filed monthly. Our Accounting and Auditing team performs this monthly service for clients, along with calculating the amount of VAT payable. The amount payable each month is basically the amount of VAT collected by the company less the amount of VAT it has paid to others.

VAT returns must be submitted to the Revenue Department by the 15th of the following month. Once a company is VAT-registered, a filing must be made monthly even if had no income that month.

Before the monthly VAT return is filed, our accountants prepare two reports – one for output VAT and one for input VAT. If the output VAT amount is higher than input VAT, the company is required to remit the difference to the Revenue Department. What this means is that the amount of VAT collected from customers is greater than the amount of VAT the company paid to its suppliers.

If the output VAT amount is less than input VAT, then the company can offset the output VAT due the next month. It is also possible to apply for a refund, but normal practice is to apply the difference to offset the next remittance.

A fine is levied for failing to submit a report or for a late filing. The amount of the fine is twice the amount of the VAT owed plus a penalty of 1.5 per cent interest on the unpaid VAT.